Building board expertise through key supporting processes

Purpose – Although board expertise has been identified as an important determinant of board performance, some surveys are still reporting that the overall level of board expertise is insufficient to carry out current and emerging roles. Consequently, companies must ensure that board members have the required skills and knowledge. This study aims to examine three board processes aimed at developing and improving board expertise. Design/methodology/approach – Based on disclosures in the corporate governance guidelines of 100 leading US companies, the study focuses on three board processes, i.e. director nominations, orientation and education programs, and board performance evaluations. Findings – Based on the initial findings, it is found that most companies in the sample were in compliance with stock exchange requirements and provided information on director nominations, orientation and education programs and board performance evaluations. All too often, however, the companies disclosed generic, non-specific information; this provides little reassurance that the proper processes are in place to promote companies’ long-term interests. Research limitations/implications – By examining these key board processes, the paper contributes to the governance literature by providing empirical evidence on this important topic and offering guidance to companies examining board processes aimed at improving directors’ overall expertise. Originality/value – By focusing on disclosures in corporate governance guidelines, the authors also gain insight into decisions made by companies under increased pressure from securities regulators and other stakeholders to provide increased transparency on governance issues.